Nokia will pay $2.2 billion to purchase out partner Siemens AG in their network equipment joint venture, a deal that is likely to bring some stability to the company after it stumbled in smartphones.Loss-making Nokia also gained full control of the profitable venture, Nokia Siemens Networks (NSN), at a cheaper than-expected price, analysts said."With this transaction, Nokia buys itself a future, whatever happens in smartphones and feature phones," Bernstein analyst Pierre Ferragu wrote in a note to clients.But he noted that the acquisition could put pressure on Nokia's balance sheet.
Siemens AG is an integrated technology company with activities in the fields of industry, energy and healthcare. Shares of SI traded higher by 0.3% or $0.3/share to $101.31. In the past year, the shares have traded as low as $80.22 and as high as $113.16. On average, 387002 shares of SI exchange hands on a given day and today's volume is recorded at 373832.
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